The Northern Cape MEC for Finance, Economic Development and Tourism, Vinus Blennies-Magage, tabled her medium-term budget at the Northern Cape Legislature on Wednesday, 03 December.
The Northern Cape adjustment budget reflects an upward revision of R1.031 billion for the 2025/26 financial year, comprising a national rollover.
The total comprises a rollover of R75.6 million, equitable share rollovers of R38.5 million, provincial adjustments of R706.2 million, and national equitable share adjustments to the tune of R240.4 million.
Blennies- Magage said the Province recorded an underspending of R443 million, comprising R102 million in conditional grants and R341 million in equitable share funds.
Of this, R75.5 million in conditional grants and R38.5 million in equitable share funds have been approved as rollovers for the current financial year.
The adjustment budget, governed by legislation, is designed to address unforeseen and unavoidable expenditure, as well as priority items announced in the main budget but not previously funded.
It comes at a time when the national unemployment rate had fallen from 33.2 percent in the second quarter to 31.9 percent in the third quarter of 2025. Similarly, the provincial unemployment rate declined from 32.7 percent to 31.2 percent over the same period. While this slight improvement is encouraging, the rate remains a deep concern and calls for urgent and collective action.
Blennis-Magage highlighted that the IMF’s October 2025 World Economic Outlook reflection, that global growth remains steady despite earlier U.S. tariff increases, with companies adapting quickly through new trade arrangements and global restraint.
” The world economy is expected to have experienced a growth of 3.2 percent in 2025 and is anticipated for 3.1 percent in 2026.
“Sub-Saharan Africa is projected to grow by 4.1 percent in 2025 and 4.4 percent in 2026, supported by improved trade and investment flows.
“Inflation is projected to stay contained at 3.3 percent for 2025 and 3.7, 3.3, and 3.2 percent over the following three years,” she pointed out.
MUNICIPAL FINANCE
In the 2025/26 financial year alone, nineteen municipalities adopted unfunded budgets, effectively planning their expenditure without securing realistic revenue sources.
This practice is risky and contravenes principles of sound financial management.
Blennies-Magabe said the declining state of the national fiscus requires municipalities to exercise strict fiscal discipline in their planning, prioritisation, and allocation of resources.
Provincial Treasury has therefore allocated R10 million in the form of a grant to assist municipalities in improving compliance across both financial and non-financial domains. This support will enhance governance, internal controls, and overall compliance, thereby addressing gaps that traditional financial systems fail to meet.
An amount of R23.6 billion is provided for the 2026/27 financial year, with R24.7 billion for 2027/28 and R25.4 billion for 2028/29.
The province remains heavily reliant on equitable share funding, with this source accounting for 76.3 per cent of the provincial receipts over the MTEF at an amount of R56.2 billion.
SOCIAL SECTOR
The importance of Early Childhood Development (ECD) cannot be overstated, as UNICEF highlights that the foundations of intelligence, personality, social behaviour, and lifelong learning are established in early childhood.
An amount of R39.8 million is allocated for ECD through a dedicated grant to advance equity and reduce long-term income disparities.
This allocation increases the subsidy from R17 to R24 per child for centre-based programmes and from R6 to R9 per child for non-centre-based programmes, while also expanding the number of subsidised children.
Of the total amount, R100 million is drawn from provincial resources to respond to the Health Ombudsman recommendations: R12 million for the appointment of nurses and other clinical posts; R30 million for maintenance and laundry services at Robert Mangaliso Sobukwe Hospital; R20 million for maintenance at Kimberley Mental Hospital, with the remaining balance directed toward settling long-outstanding accounts.
The Department of Sport, Arts, and Culture receives an additional R15 million.
Of this, R3.2 million is allocated for the national school sport championships hosted jointly by the Departments of Sport, Arts & Culture and Basic Education. It is towards ensuring that students from underprivileged communities have the opportunity to participate in these important annual events.
ECONOMIC SECTOR
The Department of Roads and Public Works is adjusted upwards with an amount of R157.7 million, of which R10 million will address personnel-related pressure in respect of technical and finance positions, and R95.6 million has been allocated towards rates and taxes settlement for the Sol Plaatje municipality.
Economic Development and Tourism is allocated R15.8 million, of which R3.600 million is allocated to provide support to the Small, Medium and Micro Enterprises.
An amount of R3.3 million is made available towards the Diamonds & Dorings Kimberley Big Hole Marathon, and R1.7 million relates to the Diamonds & Dorings Kimberley Diamond Cup.
Honourable Speaker, as part of the continuation of the province’s flagship housing programme, R242.8 million has been allocated towards the provincial housing project. This is not a new allocation but part of the first trench of the R300 million.
GOVERNANCE SECTOR
In supporting the Provincial Legislature in its constitutional responsibilities, an amount of
R70.2 million has been added to its allocation, of which R16.2 million is from self-financing.
The Provincial Treasury has been allocated R10 million to provide support to municipalities.
An additional R8.500 million is allocated to cover the interest on the Development Bank of South Africa loan.
An additional amount of R46.7 million is allocated to the Department of Transport, Safety and Liaison.
A further R13.2 million will be used towards the ring-fencing of the lease costs, and R24.9 million relates to the insourcing services (87 security personnel).
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